Giacomo Mareschi Danieli: navigating challenges and opportunities in the steel industry

BUTTRIO, Italy - March 3, 2025 - PRLog -- Discussing the Group's performance, Giacomo Mareschi Danieli noted, "We have come from three exceptional years, those after Covid, now the moment is complex. The first half of the 2024-25 fiscal year was weak. The positive note is that the investment projects, from our clients, exist. But at the same time the clients themselves are waiting, they want to understand the evolution of the markets". While the plant-making segment remains strong for Danieli, the CEO acknowledged that the steel-making division, ABS, is aiming for a break-even performance in the near term. "The steel market is cyclical; we expect a rebound in the second half of this year", he added. To counter market volatility, Danieli Group is exploring strategic acquisitions to diversify its portfolio. "We are considering some strategic acquisitions, in Italy and abroad, in order to complete the offer for our customers. The idea is to have in the portfolio of companies, maybe small but very specialized, on aluminum or steel. We have financial strength that allows us to implement these plans", Giacomo Mareschi Danieli explained. One of the highlights is the planned 400-million-euro investment in a new green steel plant for ABS, which is scheduled to start in Friuli by the end of the year. On the issue of Italy's Ilva steel plant in Taranto, the CEO clarified that Danieli was never interested in acquiring such a large-scale operation.

The Danieli Group is heavily involved in a significant project in Piombino, Tuscany, in partnership with Metinvest. "This project is critical for our business due to the cutting-edge technology involved and the strong industrial partner we are collaborating with", Giacomo Mareschi Danieli (https://topmanageronline.eu/en/tag/giacomo-mareschi-danieli/) said. With regional and national support from entities like SACE and Cassa Depositi e Prestiti, the project is advancing steadily. Construction is expected to start by 2025 or early 2026, with the steel plant becoming operational within 30 months. High energy costs remain a pressing issue for the steel sector. Italian companies pay approximately 50% more for energy compared to competitors in Germany and France. While recent government measures like energy release packages and CO2 quotas aim to alleviate this burden, the challenge persists. Interest rates are another concern. "We hope the ECB will make stronger moves: either more frequent cuts in the cost of money or bigger cuts", he stated. Despite a lackluster performance of Danieli's stock in 2024, the CEO expressed confidence in the company's core values. "Abs broke even despite the difficult time, yet the day after the accounts were announced, the stock lost share. I believe our fundamentals do not reflect the current stock market value of the stock", he explained.